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FOREX-Safe-haven dollar softens as risk sentiment recovers

Published 01/29/2021, 08:43 AM
Updated 01/29/2021, 08:50 AM
© Reuters.
AUD/USD
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DX
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* U.S. economy's resilience, strong earnings lift mood
* Bitcoin jumped 10% Thursday as riskier assets rebounded
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, Jan 29 (Reuters) - The dollar remained on the back
foot on Friday as an improvement in risk appetite sapped demand
for the safest assets, with investors taking cheer from U.S.
economic data wasn't as bad as feared.
Wall Street also provided a lift to sentiment, as stocks
rebounded after earnings season got off to a strong start and
concerns eased around hedge funds selling long positions to
cover shorts. The dollar index =USD was little changed at 90.566 early
in the Asian day, after slipping 0.1% overnight.
The gauge is still on track for a 0.4% weekly advance
following safety buying at the start of the week amid concerns
that President Joe Biden's fiscal spending package will not be
as large as the proposed $1.9 trillion.
However, many analysts expect the dollar to return to the
downward trend that saw it lose nearly 7% of its value last
year, particularly with the Federal Reserve committed to
ultra-easy monetary policy.
"Wide expectations of that huge issuance that's coming and
the support of the Fed mean that we're looking in the
medium-term for further U.S. dollar weakness," said Michael
McCarthy, chief strategist at CMC Markets in Sydney.
"The flipside of the reversal in risk appetite is we're
seeing good support for commodity currencies," like the
Australian dollar, he added.
The Aussie AUD= was about flat at 76.75 U.S. cents after
rising 0.2% overnight.
The euro EUR=EBS was little changed at $1.21175 after
edging higher in the previous session.
The dollar advanced 0.1% to 104.335 yen JPY=EBS , another
traditional safe haven, adding to the previous day's gains of
about 0.2%.
Bitcoin BTC=BTSP continued to edge higher, trading at
$33,899, after surging more than 10% on Thursday.
The world's most popular cryptocurrency has been
consolidating since touching a record high of $42,000 earlier
this month.


========================================================
Currency bid prices at 9:23AM (023 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2119 $1.2121 -0.01% -0.80% +1.2125 +1.2118
Dollar/Yen JPY=D3 104.3670 104.2100 +0.16% +1.06% +104.3800 +104.2750
Euro/Yen EURJPY= 126.50 126.35 +0.12% -0.33% +126.5100 +126.3300
Dollar/Swiss CHF=EBS 0.8886 0.8887 +0.00% +0.45% +0.8887 +0.0000
Sterling/Dollar GBP=D3 1.3719 1.3724 -0.01% +0.45% +1.3729 +1.3720
Dollar/Canadian CAD=D3 1.2828 1.2829 -0.02% +0.73% +1.2831 +1.2819
Aussie/Dollar AUD=D3 0.7672 0.7676 -0.02% -0.23% +0.7682 +0.7670
NZ NZD=D3 0.7173 0.7175 +0.00% -0.08% +0.7177 +0.7171
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX


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World FX rates https://tmsnrt.rs/2RBWI5E
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